Current Assets Are Cash or Other Assets That Are Reasonably

Multiple Choice

Current assets are cash or other assets that are reasonably expected to be converted into cash, sold, or consumed within one year or a normal operating cycle.An operating cycle is defined as the company's ability to

A) spend cash to payoff the company's liabilities
B) spend cash to acquire inventory, which is sold and returned to cash
C) spend cash to acquire inventory, which is sold to customers in the normal course of business
D) spend cash in the generation of services, which can result in an increase in revenue and net income from operations